Buy Now Pay Later and Its Intersection with Family Violence: Prevalence and Prevention

Buy Now Pay Later (‘BNPL’) has gained traction particularly among young Australians as a smart, interest-free ‘way to pay’. Yet, digitalisation, easy access to credit, and the lack of friction have heightened the risks of financial abuse. Coerced BNPL debt continues to increase, and survivors’ attempts to extricate themselves from such debt are fraught with difficulty, causing survivors long-term harm. This study employs a dual method approach, namely a survey and interviews with financial counsellors, revealing that 14.6% of clients who had BNPL debt were coerced into debt by perpetrators who weaponised BNPL platforms and their underlying legal frameworks. We identify systemic weaknesses in existing regulatory frameworks, and propose policy reforms to mitigate the harm. Through ‘safety by design’, BNPL providers can take preventative measures to reduce the risk of financial abuse and foster better outcomes for survivors.